INSURANCE AUSTRALIA GROUP LIMITED (‘IAG’) INVESTOR ... · Insurance Australia Group Limited ABN 60 090 739 923 388 George Street Sydney NSW 2000 Australia T +61 (0)2 9292 9222

Insurance Australia Group Limited ABN 60 090 739 923

388 George Street Sydney NSW 2000 Australia

T +61 (0)2 9292 9222 www.iag.com.au

23 June 2010 Manager, Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam

INSURANCE AUSTRALIA GROUP LIMITED (‘IAG’)

INVESTOR PRESENTATIONS BY IAG EXECUTIVES Attached are copies of the following investor presentations to be presented today:

1. Institutional investors in Tokyo, Japan - presented by Mr Mike Wilkins, Managing Director & Chief Executive Officer and Mr Simon Phibbs, Senior Manager Investor Relations; and

2. “The customer-created brand” – presented by Ms Jacki Johnson, CEO of The

Buzz to the UBS Ninth Annual Australian Financial Services Conference.

Yours sincerely

Glenn Revell Company Secretary

Investor Roadshow

Japan June 2010Japan – June 2010Mike Wilkins Managing Director & Chief Executive OfficerMike Wilkins, Managing Director & Chief Executive OfficerSimon Phibbs, Investor Relations

ABN 60 090 739 923

IMPORTANT INFORMATION

The information in this presentation is an overview and does not contain all information necessary to an investment decision. It should be read in conjunction with IAG’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange which are available at www.iag.com.au.g gNo representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, IAG, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence on the part of IAG, its directors, officers, employees and agents) for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation No recommendation is made as to how investors should make an investment decision Investors must rely on theirpresentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of IAG, including the merits and risks involved. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of securities.Certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters” for the purposes of the Corporations Act 2001 (Cth) and/or “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. IAG gives no undertaking to update this information over time. The forward-looking

f G fstatements involve known and unknown risks, uncertainties and other factors that may cause IAG’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based oninterpretations of current market conditions. Forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future

f N ith IAG th i t ti t th t th f thperformance. Neither IAG, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance.This presentation is for information purposes only and is not a prospectus nor an offer to issue or sell securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced ordocument outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of IAG. All amounts are presented in Australian dollars unless otherwise stated. 1H09 refers to the six months ended 31 December 2008, 1H10 refers to the six months ended 31 December 2009 and 1H11 refers to the six months ended 31 December 2010. FY09 refers to the year ended 30 June 2009, FY10 refers to the year ended 30 June 2010 and FY11 refers to the year ended 30 June 2011.

PAGE 2

Investor Roadshow - Japan

Strateg1 Strategy1

REFINED CORPORATE STRATEGY – JULY 2008

OUR STRATEGY

Deliver superior performance by actively managing our portfolio and driving operational performance and execution

OUR PRIORITIES

• Continue to improve Australian and New Zealand business performance

• Pursue selective general insurance growth opportunities

O th l

PRIORITIES Pursue selective general insurance growth opportunities

• Drive operational performance and accountability

Over the cycle: • Top quartile TSR• ROE > 1.5x WACC

OUR TARGETS

PAGE 4


IMPROVED UNDERLYING PERFORMANCE Realising benefits of refined strategyRealising benefits of refined strategy

• Improvement in reported insurance marging– 1H10 insurance margin of 13.4%

(1H09: 6.2%)

• Over half of margin expansionInsurance Profit & Margin

• Over half of margin expansion from operational improvements– Increased premium rates – Improved underwriting and claims 8 1%

13.4%

12% 14% 16%

400

500

Improved underwriting and claims management disciplines

– Cost saving initiatives – Divestment of the underperforming UK

k t ti i 2H09288

488 6.2%

8.1%

2%4% 6% 8% 10%

100

200

300

mass market operations in 2H09

• 1H10 result buoyed by favourable operating conditions

227 -2%

01H09 2H09 1H10

Insurance Profit (A$m)p g– Natural peril claim costs $45m below

allowances– Credit spread movements - $28m gain,

$86 l i 1H09

PAGE 5


vs. $86m loss in 1H09

FY10 G idance2 FY10 Guidance2

FY10 INSURANCE MARGIN GUIDANCE Revised to 6 – 7%Revised to 6 7%

14.0%

FY10 Insurance Margin Guidance

8.0%

10.0%

12.0%

9.0‐11.0%

11.5‐13.0%

10.5‐12.0%9.5‐11.0%

2 0%

4.0%

6.0% 6.0‐7.0%

0.0%

2.0%

21‐Aug‐09 3‐Feb‐10 12‐Mar‐10 26‐Mar‐10 2‐Jun‐10

Guidance range Melbourne storm Perth storm UK reserving

• Strong underlying improvement evident across Australasian business (over 85% of GWP)

Ad l i t d b• Adversely impacted by:– Melbourne and Perth natural peril events (March 2010)– Strengthening of UK bodily injury reserves (June 2010)

PAGE 7


MELBOURNE STORM – MARCH 2010One of the city’s worst-ever stormsOne of the city s worst-ever storms

Melbourne storm, 6-9 March 2010• Around 41,000 claims • $135m claim cost, net of reinsurance• A $1bn industry event

PAGE 8


…FOLLOWED TWO WEEKS LATER BY PERTHAnother $1bn industry eventAnother $1bn industry event

Perth storm 22 March 2010• About 28,000 claims • $75m claim cost, net of reinsurance

PAGE 9


UK BUSINESS REVIEW Deterioration in bodily injury claim experienceDeterioration in bodily injury claim experience

• Deteriorating market conditionsg– Bodily injury issue flagged for past 12 months

– Claim farming activities

– Increased recession-induced fraud

– Industry reports indicate:Bodily injury claim cost inflation of 10%+od y ju y c a cost at o o 0%

Increased frequency estimated at 5-10%*

Increased severity on an average claims basis estimated at 5-8%*

• Further independent actuarial review undertaken– Prompted by recent deterioration in IAG’s claim payment experience

– Requirement for significant additional reserving identified

PAGE 10


* Recipes for future success, EMB, March 2010

UK BUSINESS REVIEW Remedial actionsRemedial actions

• Detailed remedial programme implemented p g p– Further rate increases of 10-20% across all business classes

– Exiting certain, unprofitable broker relationships

– Cessation of all external aggregator-sourced business of a non-bike nature

– Strengthening of underwriting/actuarial resources and claim practices

• Purchase of new reinsurance cover – Covers 2001-2009 underwriting years

– $200m of cover in excess of reserved position

PAGE 11


UK BUSINESS REVIEW FY10 financial impactFY10 financial impact

• Significantly worse position than 31 December 2009, owing to:g y p , g– Adverse claim payment experience in opening months of calendar 2010

– Resultant revision of actuarial assumptions

– Spread of issue to post-2007 underwriting years

• Financial impact FY10 – One-off charge of approximately $365m in 2H10 (5% FY10 margin impact)

Bulk in respect of reserve strengtheningBulk in respect of reserve strengthening

$60m net charge for new reinsurance cover

$30m LAT fail, as at 30 April 2010

– Write-down of UK-related intangibles of $86m

PAGE 12


Di isional Performance3 Divisional Performance3

DIVISIONAL RESULTSPositive contribution from all divisions in 1H10Positive contribution from all divisions in 1H10

1H09 2H09 1H101H09 2H09 1H10A$m A$m A$m

Australia Direct 194 179 281

INSURANCE PROFIT

Australia Intermediated (7) 55 112New Zealand (17) 17 68UK Retained 77 36 24Asia 9 - 2Corporate & Other - - 3Corporate & Other - - 3Total Retained 256 287 490Discontinued Operations (29) 1 (2)Total Insurance Profit 227 288 488

PAGE 14


KEY INSURANCE RATIOSTrending in the right directionTrending in the right direction

Expense ratio

28 3%29.0%29.9%

Loss ratio

70.6%90%

9.4%

3.6%

17 1%

9.5%9.7%

3.1% 3.8%28.3%29.0%

10%

15%

20%

25%

30%

83.8%64.3% 64.1%

65.0%70.9%

70.6%

30%

40%

50%

60%

70%

80%

90%

17.1% 15.7% 15.3%

0%

5%

10%

1H09 2H09 1H10

Administration Ratio Commission Ratio Levies

64.3% 64.1%

0%

10%

20%

30%

1H09 2H09 1H10

Loss Ratio Immunised Loss Ratio

Combined ratio100 5%120%

14%Insurance margin (before tax)

113.7%93 3%

100.5%99.9% 93.3%

60%

80%

100%

120%

13.4%6%

8%

10%

12%

93.3% 92.4%

0%

20%

40%

1H09 2H09 1H10

6.2%8.1%

0%

2%

4%

1H09 2H09 1H10

PAGE 15


Combined Ratio Immunised Combined Ratio

AUSTRALIA DIRECTContinued strong performanceContinued strong performance

GWP & Margin

16 9%1 800

GWP (A$m)

18%1H10 results

16.9%

11.4%12.6%

1,700

1,750

1,800

10%

12%

14%

16%

18%

• GWP growth of 7.8%– Across all States – Price and volume

1,650

1,729

1,779

1,600

1,650

2%

4%

6%

8%

10%• Insurance margin of 16.9%

– Earned rate increases– Benefit from cost savings

L t l il l i t1,550

1H09 2H09 1H10-

– Lower natural peril claim costs – Favourable impact from credit spreads – Offset by lower running yield

Outlook• Further GWP growth• FY10 insurance margin higher than FY09

Insurance Ratios 1H09 2H09 1H10

Immunised loss ratio 72.8% 76.9% 70.9%

Expense ratio 21.5% 22.1% 20.4%

Ad i i t ti ti 19 3% 19 9% 18 2% • FY10 insurance margin higher than FY09• 2H10 impacted by Melbourne and Perth

events• Leveraging strong market position

Administration ratio 19.3% 19.9% 18.2%

Immunised combined ratio 94.3% 99.0% 91.3%

PAGE 16


g g g p

AUSTRALIA INTERMEDIATED Turnaround on trackTurnaround on track

GWP & Margin 1H10 resultsR d GWP d 3 6%

10.2%

1,100

1,150

1,200

GWP (A$m)

8%

10%

12%

• Reported GWP down 3.6%– ING withdrawal and St George transition

• Underlying GWP up 2%

1,1591,198

1,1175.0%

900

950

1,000

1,050

2%

4%

6%

8%– Underwriting discipline– Rates up 6% on average

• Insurance margin of 10.2%

(0.6%)800

8501H09 2H09 1H10

-2%

0% – Strong underwriting result– Absence of DAC impairment (1H09:

$50m)Insurance Ratios 1H09 2H09 1H10

Immunised loss ratio 67.4% 70.3% 61.3%

Expense ratio 39.9% 37.0% 37.2%

C i i ti 17 2% 16 5% 15 4%

– Favourable credit spread movement– Offset by lower running yield

Commission ratio 17.2% 16.5% 15.4%


Immunised combined ratio 107.3% 107.3% 98.5%

Outlook• Continued underlying improvement• 2H10 impacted by Melbourne and Perth

tPAGE 17


events• Patchy rating environment

NEW ZEALAND Strong turnaround assisted by weatherStrong turnaround, assisted by weather

GWP & M i1H10 results

GWP & Margin

15.0%480

500

GWP (A$m)

15%

20%

• GWP up 5% in local currency • Insurance margin of 15%

– Earned rate increases

482 483 472

4.0%

400

420

440

460

5%

10%– Improved underwriting discipline– Better claims management practices– Better cost control

(3.9%)360

380

400

1H09 2H09 1H10

-5%

0%

Better cost control– Lower natural perils and large losses– Higher reserve releases


Loss ratio 74.3% 65.6% 55.0%

Expense ratio 34.4% 31.1% 31.1%

C i i ti 12 6% 11 2% 12 1%

Outlook• Improvement in underlying performance

maintainedCommission ratio 12.6% 11.2% 12.1%


Combined ratio 108.7% 96.7% 86.1%

maintained • Continued benign weather in 2H10• Lower future insurance margin expected

as natural perils revert to more normal

PAGE 18


as natural perils revert to more normal level

UNITED KINGDOM Materially impacted by reserve strengtheningMaterially impacted by reserve strengthening

1H10 resultsGWP & MarginGWP (A$m)

• GWP up 24% in local currency– Average rate increases of 10%– 15% growth in fleet and special risks 406

20.2%

375

400

425

GWP (A$m)

15%

20%

25%

• Reported insurance margin lower– Modest strengthening of prior year bodily

injury claim reserves

389398

9.9%

6.6%325

350

375

5%

10%

15%

– Lower reserve releases from run-off– Weaker investment income

Outlook

3001H09 2H09 1H10

0%

Outlook• 2H10 charge of $365m

– Material reserve strengthening$60m reins rance cost


Loss ratio 63.9% 60.2% 63.7%

Expense ratio 29.9% 30.4% 31.6%

Commission ratio 14.7% 18.2% 18.3% – $60m reinsurance cost • Remedial action programme initiated• Modest margin expected in FY11


Combined ratio 93.8% 90.6% 95.3%

PAGE 19


ASIA Strong operating performance Indian JV investment completedStrong operating performance, Indian JV investment completed

IAG Asia - GWP Pool (A$m) 1H10 results

200

300

400• GWP up 5.5% in local currency• Regional GWP pool around $400m• Thai and Malaysian businesses

0

100

FY07 FY08 FY09 1H10 Annualised

yperforming well

• Reported insurance margin lower– Absence of previous DAC benefit

Thailand Malaysia (IAG Share) Malaysia (AmBank Share)

p• Investment in SBI General completed

OutlookInsurance Ratios 1H09 2H09 1H10

Loss ratio 60.0% 61.0% 58.0%

Expense ratio 36.0% 37.7% 40.5%

C i i ti 20 0% 10 4% 21 7%

Outlook• Modest GWP growth • SBI General hard launch in 1H11• Thailand performing soundly despiteCommission ratio 20.0% 10.4% 21.7%


Combined ratio 96.0% 98.7% 98.5%

Insurance margin 12.0% - 2.9%

Thailand performing soundly, despite recent political upheaval

PAGE 20


g

Capital Reins rance &4 Capital, Reinsurance & Investments

4

BALANCE SHEETStrong capital positionStrong capital position

As at 31 December 2009MCR / Debt:Total Tangible Capitalisation

MCR (x)

• Increased MCR multiple of 2.03– Improved financial performance– RES brought on-balance sheet

43.3%

29.2%35.8%

2.00

2.50

35%

40%

45%

50%

gfollowing amendments in December 2009

• Pro forma MCR multiple of 2.031.791.510.50

1.00

1.50

10%

15%

20%

25%

30%

CAPITAL MIX 1H09 2H09 1H10

approximately 1.9, adjusted for UK charge

• Retain strong capital position over short to medium term

0.001H09 2H09 1H10

-

5%

CAPITAL MIX 1H09A$m

2H09A$m

1H10A$m

Shareholder equity 4,135 4,836 5,040

Intangibles and goodwill (2,353) (2,278) (2,195)

to medium term• Debt to total tangible capitalisation

within targeted range of 30-40%• ‘Very strong’ ‘AA-’ ratings for key wholly

Tangible shareholder equity 1,782 2,558 2,845

Interest bearing liabilities 1,360 1,053 1,586

Total tangible capitalisation 3,142 3,611 4,431

• Very strong AA- ratings for key wholly owned insurers reaffirmed

PAGE 22


REINSURANCE PROTECTIONS Reducing earnings volatilityReducing earnings volatility

• A key part of approach to capital management

• Integrated programme of catastrophe cover on calendar year basis

– Main cover from $200m up to $4 1bn– Main cover from $200m up to $4.1bn– Sideways aggregate cover for multiple events ($150m excess of $150m)– Buydown below $200m as well as second and third event covers

Fi t t t i d b M lb h il t (M h 2010)– First event triggered by Melbourne hailstorm (March 2010) capped at $135m loss to IAG

– Subsequent Perth storm event (March 2010)capped at $75m loss to IAG

– Further major event in calendar 2010 would be capped at $50m

• Counterparty credit profile remains strong

• Modest rate increases incurred on 1 January 2010 renewals

PAGE 23


y

INVESTMENTS Conservative mix and high credit qualityConservative mix and high credit quality

Investment Portfolio – 31 December 2009

Group Fixed Interest & Cash - $10.6bn

< "A"

Group Investment Asset Allocation - $11.5bn

Growth

Investment Portfolio – 31 December 2009

"A"5%

3%8%

"AAA"43%

"AA"49%Fixed Interest

& Cash& Cash92%

• Conservative overall investment mix – 92% invested in fixed interest and cash • High credit quality maintained – over 90% rated AA or better, all performing • Increasing growth assets weighting in shareholders’ funds – now at mid-point of 30 –

50% b h kPAGE 24


50% benchmark

FY11 O tlook5 FY11 Outlook5

FY11 OUTLOOK Ongoing improvement in underlying performanceOngoing improvement in underlying performance

FY11 Guidance Underlying GWP growth 3–5%

• FY11 guidance first provided on 2 June 2010

Insurance margin 10.5–12.5%

• FY11 guidance first provided on 2 June 2010 – Further improvement in underlying performance of Australasian businesses– Modest UK margin

• Assumes: – Natural perils in line with budget allowance of $435m (FY10: $350m)

N t i l t i f i h t i t t k t– No material movement in foreign exchange rates or investment markets– Nil impact from credit spreads

PAGE 26


Appendices6 Appendices6

HISTORY

• A leading Australasian general insurer

• Long established history in general insurance beginning in 1925 as NRMA Insurance Limited a mutual insurance companyInsurance Limited, a mutual insurance company

• In July 2000 NRMA Insurance Limited demutualised and became a subsidiary of NRMA Insurance Group Limitedsubs d a y o su a ce G oup ted

• NRMA Insurance Group Limited listed on ASX on 8 August 2000

• Changed name to Insurance Australia Group Limited in January 2002 (ASXChanged name to Insurance Australia Group Limited in January 2002 (ASX code: IAG)

• As at 17 June 2010, market capitalisation of A$7.15bn ranking it among the 30 largest companies in the S&P/ASX 100 index

PAGE 28


IAG’S GEOGRAPHICAL PRESENCE

#

*^

~

∞

# 49% ownership^ 98% voting rights~ 26% ownership* RACV is via a distribution relationship

and underwriting joint venture with RACV Limited

PAGE 29


RACV Limited∞RACV has a 30% interest in The Buzz

1H10 GWP MIX BY GEOGRAPHY & CHANNEL

PAGE 30


GWP GROWTH AND PRODUCT SPLIT

Gross Written Premium by Business A$bn

11% 11% 11%6%

5% 5% 5%

4%

4%

3% 5% 5%

$6.4 bn$6.7 bn

$6.4 bn

$7.4 bn

$7.8 bn $7.8 bn $7.7 bn

Gross Written Premium by Business A$bn(excluding Share of Associates)

18%

18% 16% 17% 3%

3% 4%

3%

3% 3% 2%

11% 10%

10%

11% 11%

3%

6% 6%

6%

3% 4%

4%

$5.2 bn

$6.4 bn $

4%4%

21% 21% 22%

21% 22% 22% 23%

9%

16%

22% 22%

20%

5%

4%

18%

17%

12%

4%

4% $3.2 bn$3.6 bn

47% 47% 37% 34% 33% 34%

36% 38% 38% 37%

16% 18%

20% 6%

9% 6%

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 HY10 Annualised

Motor Home Short-tail Commercial Workers' Comp CTP/Motor liability Health Liability Other Short-tail Reinsurance

PAGE 31


OUR BUSINESS MODEL AND BRANDS

DIRECT INSURANCE

INTERMEDIATED INSURANCE

DIRECT INSURANCE

DIRECT INSURANCE

INTERMEDIATED INSURANCE

ONLINEINSURANCE

3

4

2

STR

ALI

A

ZEA

LAN

D

ASI

A

D K

ING

DO

M

5

AU

S INTERMEDIATED INSURANCE

INTERMEDIATED INSURANCEN

EW

UN

ITED

1

OTHER

ACTIVE PORTFOLIO MANAGEMENT & GOVERNANCE (CORPORATE OFFICE)

1 RACV is via a distribution relationship and underwriting joint venture with RACV Limited

PAGE 32


1. RACV is via a distribution relationship and underwriting joint venture with RACV Limited2. RACV has a 30% interest in The Buzz3. 49% ownership of AmG Insurance, which is part of AmAssurance4. 98% voting rights in Safety Insurance, based in Thailand5. 26% ownership of SBI General Insurance Company, a joint venture with the State Bank of India

The customer-created brand

UBS Ninth Annual Australian Financial Services ConferenceFinancial Services Conference

Jacki Johnson CEOJacki Johnson, CEO

23 June 2010

Agenda

1 Overview: organisation and market

Divider title goes here

1. Overview: organisation and market

2 H Th B bDivider title goes hereSubtitle goes here2. How The Buzz was born

3. Bringing the brand to life

4. What the future holds

5. Q & A

About The Buzz

• Australia’s first online Australia s first online community insurancebrand

• Simple, easy insurance – no jargon

• Quick – 60 second quotesA ibl 24/7• Accessible 24/7 –multiple access routes, geared to self service

• Community and ‘co-• Community and co-creation’ at the heart so we can continue to be relevant through products and services and help shape the future of insurance

PAGE 3

About IAG

Divider title goes hereDivider title goes hereSubtitle goes here

1. RACV is via a distribution relationship and underwriting joint venture with RACV Limited2. RACV has a 30% interest in The Buzz3 49% hi f A G I hi h i t f A A3. 49% ownership of AmG Insurance, which is part of AmAssurance4. 98% voting rights in Safety Insurance, based in Thailand5. 26% ownership of SBI General Insurance Company, a joint venture with the State Bank of India

Market environment: fast-changing with many opportunities

Changing consumer b h i d d hi

1

behaviour and demographic

Switching behaviour changing

2

changingCompetitor activity

Reasons for switching insurers in NSW*90

100

3

40

50

60

70

80

%

0

10

20

30

40

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

PAGE 5

*Roy Morgan July 2009

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Price Service/Product Claims

Agenda







5. Q & A

PAGE 6 <TITLE> <DATE>

12 months, from conception to birth

Started with a blank sheet of paper


May 2008CEO and Feb 2009

Sept 2008Board review

July 2008Customer Dec 2008

small team appointed

Boardupdate

of strategy and plan

15 May

insight sessions

Board update

June 2008Silicon Valley

Aug 2008eVentures

Nov 2008Myinsuranceideas

16 AprilEnd-to-

15 May

Launch

Silicon Valley trip and ID of culture required

eVentures summit

Myinsuranceideas.com.au

End toend testing

05

We started by listening to our customers . . . .

fOur customers helped us identify the gaps and their needs. This directly influenced our business model and brand strategy.


Listening to

Customers

Use of Multi-MediaDivider title goes here

Subtitle goes hereCustomers

Profiling allowed us to gain a deeper understanding of their needs

25-35 yr olds (young and trendy)

Under 45(young families)

Up to 55(mature families, maybe with older kids at home)

What’s on their mind?

• want to enjoy life• internet savvy (co-

t )

• busy • more ‘inward’

i t t

• kids are independent

ti t create)• outward focused

• internet savvy (transact/co-create)

• more time to pursue passions

• internet savvy (transact)(transact)

What are their

• mostly car insurance and

• looking for simple and efficient ways

• most complex insurance needs

insurance needs?

personal assets but moving into home insurance too

yto get insurance

• need car with increased focus on home and personal

in car and home • more savvy

customerstoo home and personal

assets

PAGE 9

We built our business model around our target customers’ needs

Customer Strategy

Pricing&

Product

Sales&

DistributionClaims

Loyalty&

Renewal

Divider title goes hereSubtitle goes here • Good referral

rate• On-line

lodgement &

• Low cancellations

tracking

• Windscreen repairrepair

• Strong testimonials

05Eventures- Enzyme customer value discovery sessions July 2008.25-45 yr old mid to high socioeconomic group

We interpreted our business model through our customers’ eyes

Internet transactors and creators25-54 year age groups, mid to high socio economic groupCustomers

Divider title goes hereOnline insurance community connected through conversation

access 24/7, flexible transparent products and pricing, easy processes and language customer tangibly valued

Central ideaDivider title goes here

Subtitle goes hereeasy processes and language, customer tangibly valued,

listened to and recognised

Unique

idea

V h f A j i Control & choiceCover & price

Unique selling proposition

Quote in 60 secs

Fully transactonline 24/7

Voucher free windscreenrepair Year 1

Accept majority of customers in

target group

Competitive for target segment, focus on transparency of price for choices made and control of pricing through choice

of cover options, agreed value, excess levelPricing

No personal advice, cannot buy through call centre or branchesNo Claim Bonus not offered – reflected more transparently in price

Trade off

05

p y p

Technology enables us to meet our customers’ needs


S btitl h

Security

Subtitle goes hereAccessibilityess b y

Reliability

Speed

Integration

We selected the brand name with all this in mind, plus more . . .

Represent essence of business opportunity1

Represent two way conversation, energy

Divider title goes hereHave available URL

across markets2People in the target demographic talk Divider title goes here

Subtitle goes hereacross markets

P lt l t ti

2 g pabout it

Subtle link with Pass cultural testing across

markets & languages3 technology and

trends

Be current and standtest of time

4

Be able to have strong5

05

visual representation5

Some key areas that define the brand

The Buzz tone of voice: we’re friendly, smart, we get to the point in a helpful way (straight forward), we appreciate people are busy

Divider title goes hereThe Buzz language: we don’t speak in jargon, we use every day speak, simple clear (but not slang) and we say things “in a nutshell”Divider title goes here

Subtitle goes here

simple clear (but not slang) and we say things in a nutshell

The Buzz look and feel: we’re modern, dynamic, engaging

The Buzz ‘help’ philosophy: Buzz Assist – multi-options to suit people’s needs (when they need it) but geared towards 24/7 online self serve

The Buzz ‘community’: the Buzz Exchange – where we co-create (evolution from myinsuranceideas.com.au)

05

But the most powerful brands are built from within

• The Buzz team lives and breathes the brand

• Our way of working is aligned to our values brand and the behaviours


• Our way of working is aligned to our values, brand and the behaviours necessary for entrepreneurial start-ups

• Strong focus on innovation – plus governanceDivider title goes hereSubtitle goes here

• Strong focus on innovation – plus governance

• Recruitment is focused strongly on cultural fit as well as key competencies

• “Flat” structure based on functional roles and responsibilities

Small FTE gi en The B is an end to end inte net b siness• Small FTE given The Buzz is an end-to-end internet business

• Premises have been fitted out to focus on openness and dialogue

• The dress code is professional casual (not typical insurer)

05

Our brand strategy brings all this together

Smarter, togetherPlatform

Divider title goes hereIntelligent

Brand characteristics Transparent Easy

Divider title goes hereSubtitle goes here

Genuine Dynamic

Brand attributes

Tailored/flexible options

Knowledge powered

Transparent & fair pricing

Knowledge powered24/7 access/support

100% online experienceSimple/intuitive

05

Agenda







5. Q & A

PAGE 17

Connecting with our target customers: traditional marketing


PAGE 18

Connecting with our target customers: out and about


PAGE 19

Connecting with our target customers: social networks


PAGE 20

Connecting with our target customers: social networks


PAGE 21

Connecting with our target customers: in the community

PAGE 22

Agenda







5. Q & A

PAGE 23 FST Conference March 2010

Home page redesign to accommodate two upcoming launches


Customer loyalty

Divider title goes hereSubtitle goes here

Home Insurance

Other priorities

• Brand awareness and driving the right traffic to the site


• Customer engagement in ongoing developments

• Underwriting and claims management disciplineDivider title goes hereSubtitle goes here• Social media strategy

• Respond to emerging technologies and consumer and market change

Measuring success

• Lead indicators:

• Traffic is in target demographic and relevant for time of purchase (l b )


(low bounce rate)

• Conversion rate – full policy to purchase

• Customer advocacy – referral rate and retentionDivider title goes hereSubtitle goes here

Customer advocacy referral rate and retention

• Low expense rate – claims and underwriting expense

• Technology – stability, availability, security

• Longer term:

• Appropriate return on risk-based capital

Final thought . . .


The market place is not neatly organised -The market place is not neatly organised customers interact across channels, products, time of the day

Q & AQ & A

Documents

INSURANCE AUSTRALIA GROUP LIMITED (‘IAG’) INVESTOR ... · Insurance Australia Group Limited ABN 60 090 739 923 388 George Street Sydney NSW 2000 Australia T +61 (0)2 9292 9222